Starting Out
How Much Does It Cost to Open a Café in Singapore?
The main cost categories to plan for when opening a café in Singapore, and why working capital matters as much as fit-out.
Draft prepared · 2 min read
Editorial draft — not yet reviewed for publication
This general guide is for information only and is not professional, legal or financial advice. Always confirm current requirements with the relevant authorities.
- Add New Nanyang's own indicative ranges only if they can be supported by real project data.
- Confirm current licensing steps and fees with the Singapore Food Agency before publishing.
There is no single answer to what a café costs to open. The figure depends on the size of the space, its condition when you take it over, the menu you plan to serve and how much of the work you do yourself. What is consistent is the list of cost categories every owner needs to plan for.
The one-off costs
Rental deposit and advance rent. Commercial leases typically require a security deposit and advance rental before you take possession. Read the lease carefully: deposits, fit-out periods and reinstatement obligations all affect your cash needs.
Renovation and fit-out. This includes design, partitioning, flooring, ceilings, lighting, plumbing, electrical works and signage. A unit previously used for F&B may have usable exhaust, grease trap and water points; a former retail unit may need all of them added.
Kitchen equipment. Cooking equipment, refrigeration, preparation tables, dishwashing, exhaust and fire-suppression systems. Your menu decides your equipment list — which is why menu planning should happen before the kitchen is designed, not after.
Front-of-house and systems. Furniture, point-of-sale system, payment terminals, crockery, uniforms and initial packaging.
Licences, professional fees and approvals. Food shop licensing, any landlord approvals, and fees for designers, contractors or consultants. Requirements change, so confirm current steps with the relevant authorities early.
Opening inventory and pre-opening wages. Your first stock order, plus wages for staff during recruitment, training and trial runs before you earn any revenue.
The cost most first-time owners underestimate
Working capital. Few new outlets trade at their target level from day one. You need enough cash to cover rent, wages, suppliers and utilities while sales build up. Running out of working capital is one of the most common reasons otherwise sound businesses struggle.
A useful exercise is to model several months of operating costs against a cautious sales assumption, and ask: how long can the business sustain itself if sales are slower than hoped?
Building your estimate
- Start with the concept and menu, then size the kitchen and equipment to match.
- Get the lease terms in writing before estimating fit-out — they change the numbers.
- Obtain more than one quotation for renovation and equipment.
- Add a contingency for the unexpected.
- Model working capital separately from set-up costs.
How we can help
New Nanyang's Business Feasibility service helps you build a preliminary cost model and test sales assumptions before you commit to a site.